By Rhiannon Hoyle

 

BHP Group Ltd. said the decision by its Brazilian joint venture with Vale SA to file for judicial reorganization is a last-resort response to legal actions from creditors in the U.S. and Brazil.

Samarco Mineração SA on Friday filed for court protection in Belo Horizonte after freezing orders against Samarco's accounts that threaten its iron-ore mining operations, BHP said.

"It was filed after unsuccessful attempts by Samarco to negotiate a debt restructure with these creditors" and is a means for Samarco to restructure its debt to establish a sustainable fiscal position, BHP said.

BHP and Vale each hold a 50% stake in Samarco, which recently restarted operations after a fatal dam collapse in 2015.

 

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

 

(END) Dow Jones Newswires

April 11, 2021 18:45 ET (22:45 GMT)

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